The nurse, Tripti Dinda (27), was admitted to the hospital on Saturday with fever, and pain in spine.
She was advised an MRI test but that could not be done as the MRI machine in the hospital was not functioning, the nurses alleged.
After Dinda's death, the nurses lodged a police complaint that she died because of negligence by authorities.
Police said when they went to the hospital to take the body for postmortem, her family members refuse to hand over the body saying they did not want it.
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An altercation followed, and Dinda's family members started a road blockade putting the body there, police said adding, after sometime they were allowed to go with the body without postmortem.
The nurses then gheraoed hospital superintendent Tanmay Panja demanding improvement of infrastructure.
Doctors of the hospital had been assaulted last night following death of a child and they also joined the nurses demanding security, hospital officials said.
The gherao was lifted after Panja promised that steps would be taken to improve infrastructure and security measure, the officials said.
Earlier this month, a nurse of a private hospital in Kolkata died while on duty also due to alleged medical negligence of the hospital authorities.